Cisco Stock Rises Despite Mixed Analyst Views and AI Growth Concerns

Cisco Systems stock rose 3.2% on October 2, 2026, closing at $112.20 on the Nasdaq. The gain came despite Piper Sandler cutting its price target from $132 to $125 while maintaining a Neutral rating, according to MarketBeat. The move reflects renewed analyst attention following Cisco's strong fiscal Q4 2026 performance, which included a 17.6% year-over-year revenue increase to $17.25 billion and an earnings per share (EPS) of $1.22, beating estimates.

The company's growth is increasingly tied to artificial intelligence infrastructure. Fiscal Q4 product orders surged 35% year over year, with hyperscaler AI infrastructure orders reaching $4 billion in the quarter, totaling $9.3 billion for the fiscal year, as reported by Yahoo Finance. Management has set ambitious guidance for fiscal 2027, projecting revenue between $72.2 billion and $73.4 billion and non-GAAP EPS between $5.05 and $5.11, suggesting accelerated growth.

Analysts remain divided on Cisco's valuation and growth sustainability. While 26 brokerages assign the stock a Moderate Buy consensus with an average 12-month target of $128.52, Piper Sandler's target sits below this average. Cisco's stock remains below its 52-week high of $130.37, with a market capitalization of $442.4 billion as of October 2, 2026.

The company's next quarterly dividend payment of $0.42 per share is scheduled for October 21, 2026. The upcoming fiscal year guidance highlights the importance of AI infrastructure revenue, which is expected to reach $7.5 billion, up from $4 billion in fiscal Q4 2026.